May 6, 2010, Introduced by Reps. Neumann, Liss, Polidori, Ball, Slavens, Bauer, Spade, Womack, Constan, Robert Jones, Valentine, Barnett and Dean and referred to the Committee on Senior Health, Security, and Retirement.
A bill to amend 1978 PA 368, entitled
"Public health code,"
by amending section 20142 (MCL 333.20142).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20142. (1) A health facility or agency shall apply for
licensure
an initial license, for a new
license due to a change of
ownership, for a license renewal, or for title XVIII or for title
XIX certification on a form authorized and provided by the
department. The application shall include attachments, additional
data, and information required by this section and by the
department.
(2) An applicant shall certify the accuracy of information
supplied in the application and supplemental statements.
(3) An applicant for an initial license, for a new license due
to
a change of ownership, or for a licensee
license renewal under
part
213 or 217 shall disclose the names, addresses, principal
occupations,
and official positions of all persons
individuals who
have
an ownership interest in the health facility or agency home
for the aged or nursing home. If the applicant for an initial
license, for a new license due to a change of ownership, or for a
license renewal under part 213 or 217 is not an individual, the
applicant shall disclose the name of the entity and the names,
addresses, and official positions of all officers and directors of
any entity that has an ownership interest in the home for the aged
or nursing home and a description of the relationship, if any,
between individuals with an ownership interest in the home for the
aged
or nursing home. If the health
facility or agency home for
the
aged or nursing home is located on or in leased real estate, the
applicant or licensee shall disclose the name of the lessor and any
direct or indirect interest the applicant or licensee has in the
lease other than as lessee. A change in ownership shall be reported
in
writing to the director not less than 15
60 days before the
change
occurs. , except that a person purchasing stock of a company
registered
pursuant to the securities exchange act of 1934, 15
U.S.C.
78a to 78kk , is exempt from disclosing ownership in the
facility
. A person required to file a
beneficial ownership report
pursuant to section 16(a) of the securities exchange act of 1934,
15
U.S.C. USC 78p shall file with the department information
relating
to securities ownership required by the department rule or
order.
An applicant or licensee proposing a sale of a nursing home
to
another person shall provide the department with written,
advance
notice of the proposed sale. A
license issued under part
213 or 217 is not transferable to any other person who seeks to
obtain or purchase an ownership interest in the facility and is
subject to revocation upon verification of the transfer of any
ownership interest to any other person. The persons proposing to
obtain or purchase an ownership interest in a home for the aged or
a nursing home shall apply for licensure on a form and in the
manner prescribed by the department. The applicant or licensee and
the
other parties to the sale change
of ownership shall arrange to
meet
with specified department representatives and shall to
obtain
before
the sale a determination of the
items of noncompliance with
applicable
law and rules which shall and
conditions of
participation that are to be corrected before the change of
ownership occurs. The department shall notify the respective
parties
of the items of noncompliance prior to with applicable
licensing laws and rules and any medicare or medicaid conditions of
participation
before the change of ownership and
shall indicate
that
the items of noncompliance must be corrected as a condition of
issuance
of not issue a license to the new owner until all of the
items of noncompliance or conditions of participation have been
corrected or, at the option of the department, the new owner has an
approved plan of correction. The department may accept reports
filed with the securities and exchange commission relating to the
filings. A person who violates this subsection is guilty of a
misdemeanor,
punishable by a fine of not more than $1,000.00
$10,000.00 for each violation.
(4)
An Upon request, an applicant or licensee under part 217
shall disclose to the department the names and business addresses
of suppliers who furnish goods or services to an individual nursing
home or a group of nursing homes under common ownership, the
aggregate charges for which exceed $5,000.00 in a 12-month period
which
includes a month in a nursing home's current fiscal year. An
Upon request, an applicant or licensee shall disclose to the
department the names, addresses, principal occupations, and
official positions of all persons who have an ownership interest in
a
business which that furnishes goods or services to an individual
nursing home or to a group of nursing homes under common ownership,
if both of the following apply:
(a) The person, or the person's spouse, parent, sibling, or
child has an ownership interest in the nursing home purchasing the
goods or services.
(b) The aggregate charges for the goods or services purchased
exceeds
$5,000.00 in a 12-month period which that includes a month
in the nursing home's current fiscal year.
(5) An applicant or licensee who makes a false statement in an
application or statement required by the department pursuant to
this article is guilty of a felony, punishable by imprisonment for
not more than 4 years, or a fine of not more than $30,000.00, or
both.
(6) Upon request, an applicant or licensee under part 217
shall disclose to the department any information the department
considers relevant to its duties under section 21755.
(7) For the purposes of this section:
(a) "Change of ownership" means any of the following:
(i) A sale of the entity to any other person.
(ii) A change in a sole proprietorship.
(iii) A transfer of the title and property to another person in
an unincorporated sole proprietorship.
(iv) A removal, addition, or substitution of a partner in a
partnership.
(v) A merger of a corporation into another corporation.
(vi) The consolidation of 2 or more corporations resulting in a
new corporation.
(vii) A change in the membership of a limited liability
company.
(viii) A transfer of an entity to a trust or a change in a
trust.
(ix) A change of ownership of 30% or more of the stock of a
corporation.
(x) A transaction that results in the change of the person who
is the legal holder of a certificate of need for the health
facility or agency.
(b) A person is considered to have an ownership interest if
they are any of the following:
(i) An officer of a corporation.
(ii) A member of the board of directors of a corporation.
(iii) A person that owns or acquires 5% or more of the stock of
a corporation.
(iv) A sole proprietorship.
(v) A partner.
(vi) A member of a limited liability company.
(vii) A manager of a limited liability company.
(viii) A trustee of an entity organized as a trust.
(ix) An individual or a corporation, partnership, sole
proprietorship, limited liability company, trust, or any other
entity, which individual or entity operates the health facility or
agency under a management agreement.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6143(request no.
02820'09) of the 95th Legislature is enacted into law.